U.S. District Judge Paul Magnuson has approved the settlement between Target and a group of financial institutions over the retail giant’s massive 2013 data breach. As part of the settlement, Target has agreed to pay $39.3 million to the financial institutions. The court has also approved attorneys’ fees of $17.8 million.
The settlement resolves a consolidated complaint filed in August 2014 by Umpqua Bank, Mutual Bank, Village Bank, CSE Federal Credit Union and First Federal Savings of Lorain after more than 40 million payment cards used at Target in late 2013 were compromised. Under the settlement, approved by Judge Magnuson, Target must pay up to $20.25 million directly to class members and an additional $19.1 million to fund MasterCard’s Account Data Compromise program, which relates to the breach.
The settlement applies to all U.S. financial institutions that issued payment cards identified as having been at risk as a result of the breach and that did not previously release their claims against the retailer by signing on to separate settlements with card brands Visa Inc., and Master Card Inc.
In December, Judge Magnuson had granted preliminary approval of the settlement and the financial institutions pressed the judge in April to issue final approval on the settlement arguing that the deal was positively received by class members and helps avoid further complex and expensive litigation. Of the 2,212 total financial institutions with members whose accounts were potentially compromised, 67 percent filed for compensation from the settlement fund – a high response rate, according to the lawyers involved in the litigation. If you need more information on this matter, contact Section Head Dee Miles or Larry Golston, a lawyer in our Consumer Fraud and Commercial Litigation Section, at 800-898-2034 or by email at Dee.Miles@beasleyallen.com or Larry.Golston@beasleyallen.com.
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